Disney and Netflix weigh free ad-supported tiers as streaming prices climb
Disney+ subscribers already absorbed a price increase in October 2025, when the ad-supported plan rose $2 a month and the ad-free plan rose $3, and CEO Josh D'Amaro told investors on a recent call that the company is now exploring a free, ad-supported version of the service for its 131.6 million subscribers. D'Amaro, who took over from Bob Iger earlier this year, said a free option would draw price-sensitive customers who resist further rate hikes. Netflix, with more than 325 million subscribers, raised its ad plan by $1 a month and its ad-free plans by $2 a few months ago. Netflix co-CEO Greg Peters told investors in July that the company must stay "careful" about free offerings because they could cannibalize its more profitable paid tiers, adding that Netflix would first build out its advertising business in local markets before considering one.
Free ad-supported inventory from two of the biggest US streaming services would expand a market already crowded with free platforms like Pluto TV, which continue to pull viewers away from paid tiers. Measurement and buying plans built around subscription-only reach would need updating if Disney or Netflix launches a free tier, since ad load and targeting on free tiers typically differ from existing ad-supported plans. Neither company has set a timeline: Disney's D'Amaro called it an idea still under exploration, and Netflix said it has no immediate plans to announce.